Terms and Conditions of Sale

Quantity and Weights:

Products purchased and sold hereunder shall be those for which Buyer submits an Order which is accepted by Watlow. Watlow’s quantities shall govern unless proved to be in error. On Orders for Products carried in stock, Watlow will deliver the ordered quantity specified. However, in the manufacture of Products it is agreed that Watlow will be allowed production losses. Watlow shall have the right to manufacture, deliver and invoice for partial deliveries of Products as stated below:

Quantity Ordered Delivery Variation

1-4 No variation

5-24 ± 1 unit

25-74 ± 2 units

75-99 ± 3 units

100+ ± 3 percent

SERV-RITE®Insulated
Wire and Cable ± 10 percent

XACTPAK® Sheathed Wire ± 10 percent

Note: Watlow will deliver exact quantities on Products with a net price of $100.00 or more. If Buyer expressly requests no variation in delivered quantity of Products with a total net price under $100.00, a ten percent (10%) surcharge will be added to the net billing on the invoice for such Order.

Delivery

FCA (IncoTerms ® 2010) - Watlow’s Pickup Plant. Risk of loss and title transfer pass to Buyer on delivery at the FCA point. Watlow shall prepay freight, assure the shipment and select the means of transportation unless Buyer provides specific written instructions otherwise with Buyer’s order. Watlow shall not be bound to tender delivery of any quantities for which Buyer has not given shipping instructions. Watlow shall be entitled to designate from time to time the locations from which Buyer may receive or pick up Products.

Payment Terms

Terms are net 30 days from date of invoice with approved credit. Prices and discounts are subject to change without notice. All quotations are valid for 30 days unless otherwise stated.

Restocking Charges

Stock heaters, controls, sensors and accessories which have not been used or modified may be returned to the relevant Watlow Plant for a twenty percent (20%) restocking charge. For Watlow’s Hannibal Plant Products only, modified-stock Products may be returned if not permanently modified, for a minimum thirty percent (30%) restocking charge. All stock and modified-stock Products require Watlow’s prior authorization to be returned and must be returned within one hundred twenty (120) days from the date of delivery. Controls may not be returned if the packaging seal is broken. Non-stock (custom) heaters, controls, sensors and accessories are not returnable.

Price Revision

Prices are subject to change without advance notice. If Watlow desires to revise the discounts, prices, points of delivery, service allowances or terms of payment but is restricted to any extent against so doing by reason of any governmental request, law, regulation, order or action, or if the discounts, prices, points of delivery, service allowances or terms of payment then in effect are altered by reason of governmental request, law, regulation, order or action, Watlow shall have the right (i) to terminate this Order by notice to Buyer, (ii) to suspend deliveries for the duration of such restriction or alteration or (iii) to have applied to this Order (as of the effective date of such restriction or alteration) any discounts, prices, points of delivery, service allowances or terms of payment governmentally acceptable. Any delivery suspended under this Section may be canceled without liability.

Return Policy

Prior approval must be obtained from the relevant Watlow Plant to return any Product. Watlow will assign a return authorization number and record the reason for the return. Watlow will examine returned Product to determine the actual cause, if any, leading to Buyer’s return. If Product has a manufacturing defect, Watlow, in its sole discretion, may issue a credit for the returned Product or repair or replace with like Product. If returned Product is not subject to Watlow’s warranty, Buyer will be notified of the estimated cost of repair, if possible. Thereafter, Buyer must advise Watlow whether or not Buyer chooses to have Product repaired at Buyer’s expense.

Order Changes

Buyer must notify Watlow in writing of requested changes in the quantity, drawings, designs or specifications for Products which are ordered but not yet in the process of manufacture. After receipt of such notice, Watlow will inform Buyer of any adjustments to be made in price, delivery schedules, etc. resulting from Buyer’s requested changes prior to incorporating requested changes into manufactured Products. Control Products require written notice of requested changes not less than sixty (60) days prior to last scheduled shipping date.

Freight and Taxes

Prices do not include prepaid freight, federal, state or local taxes. Any increase in freight rates paid by Watlow on deliveries covered by this Order and hereafter becoming effective and any tax or governmental charge or increase in same (excluding any franchise or income tax or other tax or charge based on income) (i) increasing the cost to Watlow of producing, selling or delivering Products or of procuring Products used therein or, (ii) payable by Watlow because of the production, sale or delivery of Products, such as Sales Tax, Use Tax, Retailer’s Occupational Tax, Gross Receipts Tax, Value Added Tax, and Ways Fees may, at Watlow’s option, be added to the prices herein specified and be added to invoices.

Engineering Charge

On complex Products, systems or control software modifications, an engineering charge shall be applied or included in the price of Prototypes. This charge is not subject to discounts.

Tooling

All tooling and fixtures are the property of Watlow. Watlow will accept Buyer’s special tooling if sent freight prepaid. Watlow will maintain this tooling, exercising reasonable care, in order to produce Buyer’s Products. Permanent molds for aluminum cast-in and Polymer Products shall be the property and responsibility of Buyer.

Cancellation Charges

There will be no cancellation charge for non-modified stock Products. Non-stock and modified-stock Products may be subject to a cancellation charge to be determined by Watlow depending upon the portion of Product completed at the time of such cancellation.

Excuse of Performance

(A) Deliveries may be suspended by either party in the event of: Act of God, war, riot, fire, explosion, accident, flood, sabotage; lack of adequate fuel, power, raw materials, labor, containers or transportation facilities; compliance with Governmental Requirements (as hereinafter defined); breakage or failure of machinery or apparatus; national defense requirements or any other event, whether or not of the class or kind enumerated herein, beyond the reasonable control of such party; or in the event of labor trouble, strike, lockout or injunction (provided that neither party shall be required to settle a labor dispute against its own best judgment); which event makes impracticable the manufacture, transportation, sale, purchase, acceptance, use or resale of Products or a material upon which the manufacture of Products is dependent.

(B) If Watlow determines that its ability to supply the total demand for Products, or obtain any or a sufficient quantity of any material used directly or indirectly in the manufacture of Products, is hindered, limited or made impracticable, Watlow may allocate its available supply of Products or such material (without obligation to acquire other supplies of any such Products or material) among itself and its purchasers on such basis as Watlow determines to be equitable without liability for any failure of performance which may result therefrom.

(C) Deliveries suspended or not made by reason of this Section shall be canceled without liability, but this agreement and/or Order shall otherwise remain unaffected.

Prototypes

If Buyer orders and/or Watlow delivers a Product designated as a “Prototype”, no guarantees, warranties or representations as to fitness for a particular purpose or merchantability are made with respect to such Prototype. Buyer shall have the duty and sole responsibility to test a Prototype prior to acceptance and/or incorporation into end-use applications. Further, a production Product based on a Prototype design may differ in assembly methods and materials from the Prototype. Buyer, therefore, shall have the duty and sole responsibility for testing and acceptance of production Products which are based on Prototype designs.

Warranty and Limitation of Liability

Watlow warrants its Products against defects in material and workmanship for at least one (1) year (three (3) years on some controls) from the date of delivery, provided such Product is properly applied, used and maintained. Refer to the express written warranty time period for each individual Product or contact the relevant Watlow plant for such warranty time period information. Watlow does not warrant any Product against damage from corrosion, contamination, misapplication, improper specification or wear and tear and operational conditions beyond Watlow’s control. The terms of this Warranty are the exclusive terms available to Buyer and to any other person or entity to whom Products are transferred during the period of this Warranty. No person has authority to bind Watlow to a representation or warranty other than this express Warranty. Watlow shall not be liable for incidental or consequential damages resulting from the use of Products whether a claim for such damages is based upon warranty, contract, negligence or other cause of action. Should any Product fail while subject to this Warranty, such Product shall be repaired or a substitute Product shall be provided, at Watlow’s option, at no charge to Buyer or to any other person or entity to whom Product is transferred during the period of this Warranty. Watlow must be notified of the alleged failure of Product within thirty (30) days of such event and advanced authorization for repair or replacement must be obtained in writing from Watlow. THIS WARRANTY IS MADE EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY WARRANTY ARISING FROM A COURSE OF DEALING OR USAGE OF TRADE, AND ALL OTHER SUCH WARRANTIES ARE SPECIFICALLY EXCLUDED. THE CORRECTION OF ANY DEFECT IN OR FAILURE OF PRODUCTS BY REPAIR OR REPLACEMENT TO THE EXTENT SET FORTH ABOVE, SHALL BE WATLOW’S LIMIT OF LIABILITY AND THE EXCLUSIVE REMEDY FOR ANY AND ALL LOSSES, DELAYS OR DAMAGES RESULTING FROM THE PURCHASE OR USE OF THE PRODUCTS. IN NO EVENT SHALL WATLOW BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES. WATLOW SHALL NOT BE LIABLE FOR, AND BUYER AND ANY OTHER PERSON OR ENTITY TO WHOM PRODUCTS ARE TRANSFERRED DURING THE PERIOD OF THIS WARRANTY ASSUMES RESPONSIBILITY FOR, ALL PERSONAL INJURY AND PROPERTY DAMAGE RESULTING FROM OR RELATED TO THE HANDLING, POSSESSION OR USE OF PRODUCTS AND PRODUCTS MANUFACTURED AND SOLD BY WATLOW HEREUNDER.

Miscellaneous

THE VALIDITY, INTERPRETATION AND PERFORMANCE OF THIS AGREEMENT AND/OR ORDER AND ANY DISPUTE CONNECTED HEREWITH SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OFMISSOURI. These Terms and Conditions constitute the full understanding of the parties, a complete allocation of risks between them and a complete and exclusive statement of the terms and conditions of their agreement and/or Order relating to the subject matter herein. Except as otherwise expressly provided herein, no conditions, usage of trade, course of dealing or performance, understanding or agreement and/or Order purporting to modify, vary, explain or supplement the terms or conditions of this agreement and/or Order shall be binding unless hereafter made in writing and signed by the party to be bound, and no modification shall be effected by the acknowledgment or acceptance of any purchase order or shipping instruction forms containing terms or conditions at variance with or in addition to those set forth herein. No waiver by either party with respect to any breach or default or of any right or remedy and no course of dealing or performance shall be deemed to constitute a continuing waiver of any other breach or default or of any other right or remedy, unless such waiver be expressed in writing signed by the party to be bound. If any term, condition or provision of this agreement and/or Order or the application thereof is judicially or otherwise determined to be invalid or unenforceable, or if the parties mutually agree in writing to any revision of this agreement and/or Order, the remainder of this agreement and/or Order and the application thereof shall not be affected, and this agreement and/or Order shall otherwise remain in full force and effect.